Privatization Policies of Telecommunication Industries in Indonesia

The rational objectives of telecommunication industry lie on three important goals, (1) stimulating economic growth and development, (2) creating competitive market, efficiency and productivity for telecommunication industry and (3) developing telecommunication industry with high technology improvement. By undertaking privatization as the engine or development, the study identified and concluded that three goals are mostly and gradually achieved within stipulated periods. Furthermore, such policy is able to generate broader impact on telecommunication industry and its surrounding environment in Indonesia. Since privatization is introduced, telecommunication industry emerges as the leading industry supporting to Indonesia economic growth. Additionally, this also can encourage the increasing performances of PT. Telkom and PT. Indosat. The number of competitors and operators in telecommunication industry is significantly growing. The three points above indirectly benefit for the users and policy makers through increasing nationwide telecommunication network and infrastructure and the affordability of telecommunication service tariff (ICT) for consumers.